You have been given this probability distribution for the holding-period return for KMP stock. What is the expected holding-period return for KMP stock?
State of the Economy |
Probability |
HPR |
Boom |
.30 |
18% |
Normal growth |
.50 |
12% |
Recession |
.20 |
-5% |
A10.40%
B9.32%
C11.63%
D11.54%
E10.88%